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Board Of Aldermen - Minutes - 3/12/2019 - P29

By dnadmin on Sun, 11/06/2022 - 22:42
Document Date
Tue, 03/12/2019 - 00:00
Meeting Description
Board Of Aldermen
Document Type
Minutes
Meeting Date
Tue, 03/12/2019 - 00:00
Page Number
29
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/boa_m__031220…

Board of Aldermen 03-12-2019 Page 29

that job, | said “That is one I’d be interested in, I’d only have a few meetings a year, probably 2 or 3, it is an
entry level position that would give me a voice and | already go to the meetings”.

So | typed an e-mail to the Mayor and | said, “This seat is open, no one is on it, |’d be interested in it’. |
ended up reaching out to Patricia, | was traveling she called me back on a Monday and she said, “Oh just
to let you know, the person who had it prior wants to do it again, the seat is not available, she’s going to
receive the seat”. | said, “Ok that’s the way it is’. And then | decided to go meet the individual who was
supposed to have the seat and talk to her and | asked her if she knew what was going on in the Assessing
Office and the answer was no, had she kept up, does she receive the packets, no, did she ever receive the
packets, no. And she said to me, you know, “I made it clear that if the Mayor could find somebody else to
do this job, | really am very busy with my downtown work and | really don’t want to do it, | will only do it if he
can’t find somebody else”. Well that was a little different from what | had heard.

So | typed an e-mail and | went back to the Mayor and | said “Hey, | really would be interested in the seat,
and just to let you know, to my disappointment, | am not upset that | didn’t get the seat, it’s obviously not
the place for me, that’s fine, this is not my hill to die on, maybe my best work is done on the outside”. It
was just an entry level you know foot in the door, maybe go to three meetings, I’m there anyways, maybe
have a voice on some things, but he gets to pick it, it’s his to pick.

| am disappointed that he did not have the courtesy to respond to my e-mail at all, nothing. It just went into
vapor space. And | am disappointed that he doesn’t take these seats seriously, these seats that he has to
fill. We have a little bit of a crisis in that department and we have some weaknesses in that Board and we
could really use a Mayor who is using his expertise and reaching out to try and fill these seats with the best
people possible and that may not be me. He may have a better person in mind, that’s fine, but at least
show me you are working at it, you know? Not that it’s just let’s hurry up and quickly get someone in there
and make this person take it if they really didn’t want it because they are the best person. So that’s a little
disappointing, it just shows me how far we have to go to really you know fix things over there. And | would
love to see some public positions available, maybe it doesn’t have to be anything permanent, but some
short term openings where the public could participate maybe in policy creation, a one year seat or panel,
discussion group, work with consultants, try and look at better ways of doing what we do down there. |
think there’s an opportunity for that, that’s not a long term position, it would just be a short term thing and
that might be helpful, but not my hill to die on, it’s ok that | didn’t get it. Thank you.

REMARKS BY THE MEMBERS OF THE BOARD OF ALDERMEN
Alderman Klee

Yes I’d like to make a couple comments, first I’d just like to make a comment about the Board of Assessors
and | know, | just recently found out that Ms. Blaisdell turned it down. She thought she had sent out an e-
mail so she sent me an e-mail and | know she sent it to the Mayor’s Office too that she wasn’t interested in
the position, | think it was just two days ago that | received that e-mail. So just to get that straight. And the
other comment | wanted to make is that | did not sponsor the Administrative Position and not because |
don’t support it, | do support that and | spoke to Ms. Kleiner earlier today and | have been speaking with her
on a regular basis and | said that | am glad that we finished Part 1; but that | wanted Part 2, 3 and 4 and so
on and the process and the policy to be completed, timely and so on and | have been assured that they are
working on that.

| don’t Know how that process is going to happen | don’t get into the weeds as far as people doing the jobs.
But | did want to personally thank Mrs. Ortolano for the work she’s done. As she has explained to us and |
know she has spent hours of time looking at property cards, educating herself on the process, while | won’t
speak for anyone else | can say that during this process she did educate me on many of the elements of
the cards and | brought this to different people’s attention and how it was used to calculate property
assessments. And while | truly wish things had been a whole lot less contentious the bottom line is that |
really do think we are on the road to resolving the past issues and hopefully, you know, ultimately a better

Page Image
Board Of Aldermen - Minutes - 3/12/2019 - P29

Board Of Aldermen - Minutes - 3/12/2019 - P30

By dnadmin on Sun, 11/06/2022 - 22:42
Document Date
Tue, 03/12/2019 - 00:00
Meeting Description
Board Of Aldermen
Document Type
Minutes
Meeting Date
Tue, 03/12/2019 - 00:00
Page Number
30
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/boa_m__031220…

Board of Aldermen 03-12-2019 Page 30

and more transparent system. And | do want to thank you Lori for the work that you’ve done. | also want to
thank Kim Kleiner and so on for taking this above and beyond her duties of doing this. | think we are on the
road and | think hearing from the public of what they want us to do, and how they want us to move forward
is important, but ultimately | think as long as we keep an open mind and continue on this road that we will
work things out and you know | feel bad that things aren’t, haven’t always been perfect but | do think we are
heading the right way.

Alderman Jette

| too would like to thank Mrs. Ortolano for bringing a lot of these issues to our attention and you know she’s
been very articulate about this whole thing, but her voice is not the only I’ve heard. A lot of our citizens
question the fairness of our current assessment process and | think the Mayor by ordering this audit and |
think the audit itself was a step in the right direction. | think we can look forward to some improvements
and | think the Mayor has talked about being on board with doing a complete reevaluation, the so-called list
and measure | think is what they call it. | support that and | am looking forward to more on that.

| also would like to congratulate Margaret Loret Ward 5 resident on her appointment and | want to
congratulate Alderman Clemons and welcome him, maybe he ought to be welcoming some of us since he’s
been here before, but it is our turn to welcome him. And lastly | would be remiss if | did not acknowledge
that next week we will be celebrating the feast of that great Saint and Patron of the Christian Church, of
course, | am speaking of St. Joseph.

Alderwoman Melizzi-Golja

| will just follow up and say “Yay” to St. Joseph, my favorite desserts. | too would like to welcome Alderman
Clemons and look forward to working with him once again, congratulations. And thank you to all of those
who came and spoke this evening during the public comment and the public hearing. One other thing, and
Alderman Laws can correct me but | believe next Tuesday at 6:00 GAD is having their Annual Meeting in
the Auditorium. Is that correct, before PEDC? Yes so just for anyone who would like attend, Paul Shea will
be doing the Annual Meeting for GAD in the Auditorium at 6:00 p.m. and as Alderman Tencza said, PEDC
will follow. Thank you.

Alderman Clemons

Thank you for everybody’s warm welcome. | just want to be brief and say that | will be raising this Sunday
for my favorite Saint, which is St. Patrick and | want everybody to enjoy and have a safe St. Patrick’s Day.
Make sure you have a designated driver or take an Uber or Lyft home or a cab.

President Wilshire

| too would like to welcome Alderman Clemons back to the horseshoe, he has been missed, so welcome
back Alderman Clemons

Committee announcements:
Alderman Dowd

On the 18"", we are going to be starting our series of budget meetings, everybody on the Board has got a
list of when those occur particularly the Budget Committee, | would like you to study before you come in for
that particular department so that you Know what to expect and what questions to ask. The budgets pretty
much haven’t changed except for a few departments and I’m sure you'll hear from those departments when
they come through. | will be putting out some other guidance before the first meeting, actually the first
meeting | will be occupied somewhere else, | have a previous commitment, but the president of the board
will be chairing that particular meeting and | believe it is Public Health.

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Board Of Aldermen - Minutes - 3/12/2019 - P30

Board Of Aldermen - Minutes - 3/12/2019 - P31

By dnadmin on Sun, 11/06/2022 - 22:42
Document Date
Tue, 03/12/2019 - 00:00
Meeting Description
Board Of Aldermen
Document Type
Minutes
Meeting Date
Tue, 03/12/2019 - 00:00
Page Number
31
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/boa_m__031220…

Board of Aldermen 03-12-2019 Page 31

So get familiar with the schedule, do your homework so that we can review all of the budgets, all the
departments as well as we can. Alderman Clemons, welcome to the Budget Committee.

Alderman Clemons

2010 | think was the last time | was on that.

Alderman Lopez

Substandard Living Conditions Committee is meeting this Thursday.

Alderwoman Melizzi-Golja

As | indicated, PEDC will meet next Tuesday at 7:00 p.m. And also | forgot to say in your mailboxes, you
will find the most recent magazine that the Chamber has put together. | got some copies of those and
thought you might be interested so those are for you. And if you would like more, I’m sure you can contact

the Chamber for those. Thank you.

ADJOURNMENT

MOTION BY ALDERMAN O’BRIEN THAT THE MARCH 12, 2019, MEETING OF THE BOARD OF
ALDERMEN BE ADJOURNED
MOTION CARRIED

The meeting was declared adjourned at 9:40 p.m.

Attest: Patricia D. Piecuch City Clerk

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Board Of Aldermen - Minutes - 3/12/2019 - P31

Board Of Aldermen - Agenda - 3/12/2019 - P1

By dnadmin on Sun, 11/06/2022 - 22:42
Document Date
Fri, 03/08/2019 - 11:45
Meeting Description
Board Of Aldermen
Document Type
Agenda
Meeting Date
Tue, 03/12/2019 - 00:00
Page Number
1
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/boa_a__031220…

SPECIAL BOARD OF ALDERMEN

MARCH 12, 2019

7:00 PM Aldermanic Chamber

PRESIDENT LORI WILSHIRE CALLS ASSEMBLY TO ORDER PRAYER

OFFERED BY CITY CLERK PATRICIA D. PIECUCH

PLEDGE TO THE FLAG LED BY ALDERMAN-AT-LARGE DAVID C. TENCZA
ROLL CALL

PUBLIC HEARING
R-18-073, Amended

PROPOSING AN AMENDMENT TO THE CITY CHARTER RELATIVE TO FILLING
VACANCIES ON ELECTED BOARDS BY MAJORITY VOTE OF THE REMAINING
MEMBERS OF THAT BOARD

Testimony in Favor
Testimony in Opposition
Testimony in Favor

Testimony in Opposition

ADJOURNMENT

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Board Of Aldermen - Agenda - 3/12/2019 - P1

Board Of Aldermen - Agenda - 3/12/2019 - P2

By dnadmin on Sun, 11/06/2022 - 22:42
Document Date
Fri, 03/08/2019 - 11:41
Meeting Description
Board Of Aldermen
Document Type
Agenda
Meeting Date
Tue, 03/12/2019 - 00:00
Page Number
2
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/boa_a__031220…

Board of Aldermen

City of Nashua
229 Main Street Lori Wilshire
Nashua, NH 03061-2019 President, Board of Aldermen

(603) 589-3030

March 1, 2019

Patricia D. Piecuch, City Clerk
City of Nashua

229 Main Street

Nashua, NH 03061-2019

Dear Ms. Piecuch:

Please be advised | am hereby calling a Special Meeting of the Board of Aldermen on Tuesday, March
12, 2019, at 6:30 p.m. in the Aldermanic Chamber. The Solid Waste Department will be in attendance

to give a presentation on recycling.

Thank you.

Athi. wW. ° | °
Lori Wilshire

President

cc: Mayor Jim Donchess
Steven A. Bolton, Corporation Counsel

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Board Of Aldermen - Agenda - 3/12/2019 - P2

Board Of Aldermen - Agenda - 3/12/2019 - P3

By dnadmin on Sun, 11/06/2022 - 22:42
Document Date
Fri, 03/08/2019 - 11:48
Meeting Description
Board Of Aldermen
Document Type
Agenda
Meeting Date
Tue, 03/12/2019 - 00:00
Page Number
3
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/boa_a__031220…

Mine Falls Park Advisory Committee

Nicholas Serpa (Reappointment) Term to Expire: December 31, 2019
9 Joston Place
Merrimack, NH 03054

UNFINISHED BUSINESS — RESOLUTIONS

R-18-073, Amended
Endorsers: Alderman-at-Large Brian S. McCarthy
Alderwoman-at-Large Shoshanna Kelly
Alderman-at-Large Michael B. O’Brien, Sr.
Alderman Jan Schmidt
Alderman Tom Lopez
Alderman-at-Large Brandon Michael Laws
Alderwoman Mary Ann Melizzi-Golja
PROPOSING AN AMENDMENT TO THE CITY CHARTER RELATIVE TO FILLING VACANCIES ON
ELECTED BOARDS BY MAJORITY VOTE OF THE REMAINING MEMBERS OF THAT BOARD
e Amended and Tabled pending Public Hrg scheduled for 3/12/2019 at 7 PM in the Chambers

R-19-103
Endorser: Alderman Ernest Jette
AUTHORIZING THE CONVEYANCE OF DISCONTINUED PORTIONS OF CONANT ROAD
e Committee on Infrastructure Recommends: Final Passage

R-19-104
Endorsers: Alderman Richard A. Dowd
Alderwoman Mary Ann Melizzi-Golja
Alderwoman-at-Large Shoshanna Kelly
Alderman Jan Schmidt
Alderman-at-Large Brandon Michael Laws
Alderman Patricia Klee
Alderman Linda Harriott-Gathright
Alderman-at-Large Lori Wilshire
APPROVING THE COST ITEMS OF A COLLECTIVE BARGAINING AGREEMENT BETWEEN
THE NASHUA BOARD OF EDUCATION AND THE NASHUA TEACHERS’ UNION, LOCAL 1044,
AFT, AFL-CIO, UNIT D, FOOD SERVICE WORKERS FROM SEPTEMBER 1, 2018 THROUGH
AUGUST 31, 2021
e Budget Review Committee Recommends: Final Passage

R-19-107
Endorsers: Mayor Jim Donchess
Alderman Jan Schmidt
Alderman-at-Large David C. Tencza
Alderwoman Mary Ann Melizzi-Golja
Alderman June M. Caron
Alderman Tom Lopez
Alderman-at-Large Brandon Michael Laws
Alderman Patricia Klee
Alderman Linda Harriott-Gathright
Alderman-at-Large Michael B. O’Brien, Sr.
RELATIVE TO THE SUPPLEMENTAL APPROPRIATION OF $50,250 OF UNANTICIPATED REVENUE
FROM FUND #1000 “GENERAL FUND”, ACCOUNT #43295 “REVENUE FROM FEDERAL GRANT”
INTO FUND #7074 “SCHOOL SPECIAL EDUCATION EXPENDABLE TRUST FUND”
e Budget Review Committee Recommends: Final Passage

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Board Of Aldermen - Agenda - 3/12/2019 - P3

Board Of Aldermen - Agenda - 3/12/2019 - P4

By dnadmin on Sun, 11/06/2022 - 22:42
Document Date
Fri, 03/08/2019 - 11:48
Meeting Description
Board Of Aldermen
Document Type
Agenda
Meeting Date
Tue, 03/12/2019 - 00:00
Page Number
4
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/boa_a__031220…

R-19-113

Endorsers: Mayor Jim Donchess
Alderwoman-at-Large Shoshanna Kelly
Alderman-at-Large Michael B. O’Brien, Sr.
Alderman Richard A. Dowd
Alderman Patricia Klee
Alderman-at-Large Brandon Michael Laws
Alderman Ernest Jette
Alderman-at-Large David C. Tencza
Alderman Jan Schmidt
Alderman-at-Large Lori Wilshire
Alderman Linda Harriott-Gathright

ADOPTING ENVIRONMENT AND ENERGY COMMITTEE RECOMMENDATIONS

e Personnel/Administrative Affairs Committee Recommends: Final Passage

UNFINISHED BUSINESS — ORDINANCES

O-18-030
Endorsers: Alderman-at-Large Brandon Michael Laws
Alderwoman Mary Ann Melizzi-Golja
Alderman Patricia Klee
Alderman Linda Harriott-Gathright
INCREASING FEES FOR LEASED CITY PARKING SPACES
e Personnel/Administrative Affairs Committee Recommends: Final Passage

O-19-035
Endorsers: Alderman June M. Caron
Alderwoman-at-Large Shoshanna Kelly
RESCINDING THE RIGHT TURN ON RED PROHIBITION FROM THE COSTCO EXIT ONTO
DANIEL WEBSTER HIGHWAY
e Committee on Infrastructure Recommends: Final Passage

NEW BUSINESS — RESOLUTIONS

R-19-114
Endorser: Mayor Jim Donchess
AUTHORIZING THE MAYOR AND CITY TREASURER TO ISSUE BONDS NOT TO EXCEED
THE AMOUNT OF SIX MILLION DOLLARS ($6,000,000) FOR THE PHASE III LINED LANDFILL
EXPANSION OF THE NASHUA FOUR HILLS LANDFILL, TO INCLUDE ENGINEERING SERVICES

R-19-115
Endorsers: Mayor Jim Donchess
Alderman Ernest Jette
RELATIVE TO THE SUPPLEMENTAL APPROPRIATION OF $120,000 OF UNANTICIPATED
REVENUE FROM FUND 6000 “SOLID WASTE FUND”, ACCOUNT 44286 “COVER MATERIAL
REVENUE” INTO FUND 6000 “SOLID WASTE FUND”, ACCOUNT 55699 “OTHER CONTRACTED
SERVICES”

R-19-116
Endorser: Alderman Richard A. Dowd
CHANGING THE PURPOSE OF UP TO TEN THOUSAND DOLLARS ($10,000) OF UNEXPENDED
BOND PROCEEDS FROM THE ROOF REPLACEMENT WORK AT FAIRGROUNDS MIDDLE SCHOOL
AND LEDGE STREET ELEMENTARY SCHOOL TO PAY COSTS OF ROOF ASSESSMENTS AT MAIN
DUNSTABLE, BIRCH HILL, AND BICENTENNIAL ELEMENTARY SCHOOLS

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Board Of Aldermen - Agenda - 3/12/2019 - P4

Board Of Aldermen - Agenda - 3/12/2019 - P5

By dnadmin on Sun, 11/06/2022 - 22:42
Document Date
Fri, 03/08/2019 - 11:48
Meeting Description
Board Of Aldermen
Document Type
Agenda
Meeting Date
Tue, 03/12/2019 - 00:00
Page Number
5
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/boa_a__031220…

R-19-117
Endorser: Mayor Jim Donchess
CHANGING THE USE OF FUNDS FOR A WASTEWATER FUND CAPITAL IMPROVEMENTS
PROJECT FROM BRIDGE STREET OVERFLOW DETENTION BASIN IMPROVEMENTS TO WET
WEATHER FACILITY SCREEN AND RAKE UPGRADES

R-19-118
Endorser: Mayor Jim Donchess
RELATIVE TO THE ACCEPTANCE AND APPROPRIATION OF UP TO $218,486 FROM THE
STATE OF NEW HAMPSHIRE DEPARTMENT OF HEALTH AND HUMAN SERVICES INTO
TRANSIT GRANT ACTIVITY “FEDERAL TRANSIT AUTHORITY (“FTA”) OPERATING GRANT”

R-19-119
Endorser: Alderman-at-Large Lori Wilshire
AUTHORIZING PENNICHUCK CORPORATION AND PENNICHUCK EAST UTILITY, INC. TO
ENTER INTO A TERM LOAN WITH COBANK, ACB

R-19-120
Endorser: Alderman-at-Large Lori Wilshire
CHANGING THE NAME OF PANTHER DRIVE TO OFFICER JAMES ROCHE DRIVE

R-19-121
Endorser: Mayor Jim Donchess
RELATIVE TO THE ACCEPTANCE AND APPROPRIATION OF $43,113 FROM THE UNITED STATES
DEPARTMENT OF JUSTICE INTO POLICE GRANT ACTIVITY “2018 JUSTICE ASSISTANCE GRANT
(MULTI-JURISDICTIONAL)”

R-19-122
Endorser: Mayor Jim Donchess
DISCONTINUING THREE EXPENDABLE TRUST FUNDS

NEW BUSINESS — ORDINANCES

O-19-040
Endorser: Mayor Jim Donchess
ESTABLISHING AN ADMINISTRATIVE SERVICES DIVISION AND DIRECTOR POSITION

PERIOD FOR GENERAL PUBLIC COMMENT

REMARKS BY THE MEMBERS OF THE BOARD OF ALDERMEN
Committee announcements:

ADJOURNMENT

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Board Of Aldermen - Agenda - 3/12/2019 - P5

Board Of Aldermen - Agenda - 3/12/2019 - P6

By dnadmin on Sun, 11/06/2022 - 22:42
Document Date
Fri, 03/08/2019 - 11:48
Meeting Description
Board Of Aldermen
Document Type
Agenda
Meeting Date
Tue, 03/12/2019 - 00:00
Page Number
6
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/boa_a__031220…

a, PENNIGHUCK 25 MANCHESTER STREET

PO BOX 1947
MERRIMACK, NH 03054-1947

(603) 882-5191
FAX (603) 913-2305

VIA HAND DELIVERY WWW.PENNICHUCK.COM

March 1, 2019

Mr. Steven A. Bolton
Corporation Counsel
City of Nashua

229 Main Street
Nashua, NH 03060

Re: Pennichuck East Utility, Inc. — Request for Approval of Term Loan with CoBank, ACB

Dear Attorney Bolton:

Introduction. As you know, the City of Nashua, New Hampshire (the “City”) is the sole
corporate shareholder of Pennichuck Corporation (“Pennichuck”). The City has been the sole
shareholder since the acquisition of Pennichuck on January 25, 2012.

The purpose of this letter is to request that the City, acting in its capacity as sole shareholder,
approve resolutions authorizing Pennichuck’s regulated public water utility subsidiary,
Pennichuck East Utility, Inc. (“PEU”), to enter into a term loan with CoBank, ACB (“CoBank”).

Background. As part of the City’s acquisition of Pennichuck, in accordance with special
legislation enacted by the State Legislature, and as unanimously approved by the Mayor and
Board of Aldermen on January 11, 2011, the corporate structure of Pennichuck and its utility
subsidiaries was retained. This corporate structure was retained for several reasons. First, the
Mayor and Board of Aldermen desired to maintain stability and continuity for customers and
employees of the Pennichuck utilities and the communities they serve. Second, retaining the
corporate structure provided continuity for the existing relationships with regulatory agencies
and financial/banking partners. Third, the Mayor and Board of Aldermen unanimously agreed
that the corporate structure would encourage business-smart decisions and rely upon well-
established governance principles of corporate law, pursuant to Pennichuck’s Articles of
Incorporation and its by-laws.

Shareholder Approval of Borrowings Required. Under Article IX of Pennichuck’s Articles of
Incorporation, the City, acting in its capacity as Pennichuck’s sole shareholder, must approve: |

“(3) any action to (A) create, incur or assume any indebtedness for borrowed
money or guarantee any such indebtedness of any person, (B) issue or sell

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Board Of Aldermen - Agenda - 3/12/2019 - P6

Board Of Aldermen - Agenda - 3/12/2019 - P7

By dnadmin on Sun, 11/06/2022 - 22:42
Document Date
Fri, 03/08/2019 - 11:48
Meeting Description
Board Of Aldermen
Document Type
Agenda
Meeting Date
Tue, 03/12/2019 - 00:00
Page Number
7
Image URL
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«9 =

any debt securities or warrants or other rights to acquire any debt securities
of the [Pennichuck] Corporation or any of its Subsidiaries, or (C) guarantee
any debt securities of any person.”

Proposed Term Loan Borrowing from CoBank

PEU is a New Hampshire public utility corporation providing retail water service to
approximately 8,100 customers in the New Hampshire towns of Atkinson, Barnstead, Bow,
Chester, Conway, Derry, Exeter, Hooksett, Lee, Litchfield, Londonderry, Middleton, Pelham,
Plaistow, Raymond, Sandown, Tilton, Weare and Windham. PEU is wholly-owned by
Pennichuck which, in turn, is wholly-owned by the City.

PEU has entered into a Master Loan Agreement with CoBank dated as of February 9, 2010 (the
“Master Loan Agreement”), which provides the framework for CoBank to make loans to PEU from
time to time. A copy of the Master Loan Agreement is attached to this letter as Attachment A.

PEU requests the City’s approval for PEU to enter into a term loan with CoBank in an amount up
to $1,450,000 with an amortization period of up to 25 years, with an interest rate to be determined
based on market conditions (currently estimated at approximately 4.5% per annum). A copy of
the term sheet for the term loan with CoBank is attached to this letter as Attachment B.

The proceeds from the CoBank loan will be used to refinance and repay up to approximately
$1,450,000 of Fixed Asset Line of Credit (“FALOC”) borrowings by PEU, under its $3 million
FALOC with CoBank, which was used to fund capital improvements to the PEU water system
infrastructure during 2018, which were not funded by State of New Hampshire Drinking Water
Revolving Loan Fund (SRF) or NH Drinking Water and Groundwater Trust Fund loans or grants.

The FALOC with CoBank was approved by the Pennichuck and PEU Boards of Directors, the
NH Public Utilities Commission (“NHPUC”), and the City of Nashua as shareholder, in March
of 2018 (in NHPUC Order No. 26,117, Docket DW 17-157), to provide for capital improvements
financing during each calendar year, with subsequent annual refinancing and repayment of
amounts borrowed with term loans, consistent with PEU’s allowed rate structure with the
NHPUC under Order No. 26,179 (Docket DW 17-128).

The CoBank loan will be secured by (i) a security interest in PEU’s equity interest in CoBank
(consisting of PEU’s $124,847 earned equity investment in CoBank from patronage dividends
received since 2010, and PEU’s right to receive future patronage dividends), and (ii) the
unconditional guarantee of PEU’s obligations to CoBank by Pennichuck pursuant to the
Guarantee of Payment (Continuing) dated as of February 9, 2010 between Pennichuck and
CoBank (the “Guaranty Agreement’), a copy of which is attached to this letter as Attachment C.

The Lender — CoBank, ACB. CoBank is a government sponsored enterprise (“GSE”) owned
by its customers, who consist of agricultural cooperatives, rural energy, communications and
water companies and other businesses that serve rural America. As a GSE, CoBank issues its
debt securities with the implicit full faith and credit of the United States Government and uses
these low-cost funds to make loans to companies like PEU that meet its charter requirements.
As a result of the implicit backing of the U.S. Government, CoBank’s borrowing costs are lower
than commercial banks and financial institutions, and these lower costs are passed on to its

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